Mobile in Korea

  As I mentioned, full browsing service for mobile internet is attracting many korean users after LGT launched OZ service. Full browsing service enables many users to connect to usual web pages with mobile handsets. However, some guys point out that, because usual Korean portal put too many contents including picture and text on an independant web page, usual web pages are not proper for mobile service.

  Thus, popular web-portals started to transform their service for mobile service. Naver, the biggest korean portal, has already provided the simple edition of its initial page. The simple edition of Naver looks like the initial page of Google. The initial page of Naver SE excludes unnecessary pictures and text and includes just only a blank input box for search like Google. It is very effective and efficient for mobile web browsing service.

Naver Simple Edition

Original Naver

  I've been to WiMAX Forum Congress Asia 08 from 8th April to 10th April. I am wondering whether mobile broadband based on WiMAX (and LTE) will succeed in developed markets (in terms of mobile service) including Korea, Hong Kong and Japan.

  In the Congress, many participants from emerging markets including India, Malaysia, Indonesia and Pakistan are expecting that WiMAX will perform an important role for roll-out of broadband service. The penetration rates of fixed broadband service in emerging markets are very low under 10%. The providers think the broadband service is a great opportunity for growth and are trying to expand the service through their countries. Because they did not have fixed broadband infrastructure like fiber optic and copper line, they must invest much money in order to provide the broadband service. In this case, mobile or nomadic broadband using WiMAX is more efficient than fixed broadband using fiber optic or copper line. Moreover, some countries including Malaysia and Indonesia consist of many islands. It is very difficult for them to build fixed infrastructures over the whole countries.

  However, developed countries including Korea and Japan have different environments. For example, the penetration rate of broadband service in Korea is over 80%. In addition, there are so many PC cafe providing computer and fast speed internet connection. Usual Korean people might have no needs for mobile broadband. Because the environment of internet connection is well developed, they do not like taking a laptop when they are out of home and do not want to subscribe the mobile broadband service like KT WiBro and SKT T LOGIN. Even if WiBro service was launched in 2006, the number of subscribers is only 150,000 up to now. A pay Wi-Fi service, Netspot, which is a simmilar to mobile broadband service, is not also evaluated as a successful service in Korea. (It has attracted about 400,000 subscribers since 2002.)

  KT is focusing on another business opportunities using WiBro. KT also thinks that it is difficult for WiBro to expand with only mobile broadband service which provides an internet connection with usb modem or PCMCIA card. KT is trying to develop various mobile service using WiBro. For example, mobile education service was launched for undergraduate students of SKKU. KT announced today, that a full browsing service on a smart phone will be provided. However, I am not sure that the efforts and strategies for expansion of WiBro service would give a great result to KT.

  I am agree that many innovative mobile services like full browsing, mobile education and mobile health service must attract users for WiBro in order to succeed in developed markets. However, why do we have to consider WiBro as the network for the services? There are alternatives like HSDPA and CDMA. LGT succeeded to provide full-browsing service using CDMA EV-DO Rev.A and already attracted 50,000 users for 15 days after launch.

  I am wondering how WiBro or WiMAX service can survive in developed markets.
 

  LG Telecom launched a full browsing service using EV-DO Rev.A. Even if about 10 days have passed after LG Telecom launched this service in 4th April, LG Telecom attracted new 4,000 subscribers a day on average.

  There are two barriers preventing the expansion of mobile data service on handset.

  The first one is data traffic price. If someone wants to use data service with handset, he usually has paid about $25 per month. However, LG Telecom started to provide data service at an affordable price of $6 per month. It is by far the cheapest data service option for user of mobile data service in Korea.

 The second one is the walled garden policy of korean mobile operators. Mobile internet services in Korea are usually provided in a closed portal of each operator. (SK Telecom : Nate / KTF : Magic N / LG Telecom : Ez i) In this environment, the limited services like ring back tone and ringtone have gotten popularity. Although Korean government and  many internet portals including Naver and Yahoo have pushed mobile operators to open their mobile internet service, they have kept the closed services. LG Telecom started to attack other operators through opening data service with full browsing service and users are welcoming the change of mobile data service.

  Since last year, SK Telecom and KTF have been investing to establish the WCDMA service allowing video calling services and spending their efforts in order to make this service as a killer app of 3G. However, the full browsing service is more possible to become a killer app of 3G.